A budget draft obtained by news source POLITICO confirms a March 16 report in NAHBNow that the Trump administration plans deep spending cuts to HUD programs as part of its fiscal 2018 budget.

According to POLITICO, the White House budget would eliminate the Community Development Block Grant (CDBG) program, which provides communities with resources to address a wide range of urban renewal projects. The CDBG program received $3 billion in funding for 2017.

The budget would also eliminate the HOME Investment Partnership and Choice Neighborhoods programs.

HOME received $950 million in funding for 2017. The program is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Many multifamily builders often use the HOME program to fund developments in conjunction with the Low Income Housing Tax Credit.

The administration’s official budget draft is expected to be released next week and NAHB continues to closely track the budget process, which is in its early stages. The president’s budget is meant to serve as a marker, but it is up to the Congress to write and submit a federal budget, and appropriate funds. Lawmakers are expected to take several months to go through the appropriations process, and NAHB will continue to work with Congress and the administration to ensure the final spending deal properly funds important housing programs.

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“…NAHB will continue to work with Congress and the administration to ensure the final spending deal properly funds important housing programs.”

Does this mean NAHB will lobby Congress to put CDBG block grants and HOME program funds back in the budget at current levels? Sure hope so. HUD should promote and ensure greater accountability so that funds truly provide for affordable housing, otherwise affordable housing will be expected to be borne by private builders and developers through increased use of inclusionary zoning by municipalities. Another program to keep an eye on are SHOP grants, which are funds directed to “self-help” building entities, which is almost always your local Habitat for Humanity affiliate.